MAPLETREE Logistics Trust has recently confirmed that it would acquire a warehouse in the Vietnam-Singapore Industrial Park I, situated in Vietnam’s Binh Duong province, for nearly S$43 million (US$31.30 million). After the acquisition is complete, the property will supposedly be leased for 10 years to Unilever Vietnam.
Sources with knowledge of the matter informed that the property has been designed with Grade A building specifications, including 30kN/sqm of floor loading capacity and minimum 10 meters of clear height, aligning with the international requirements and standards for warehouse and logistic operators. The property has around 66,800 sqm of gross floor area and 101,200 sqm of land area.
Comprised of three connected blocks of single-storey warehouses, the latest property addition is located in Southern key economic region of Vietnam, as Binh Duong is reportedly the largest logistics hub in the southern part of the country, accounting for almost half of its total supply. A strong industrial growth and a thriving manufacturing hub has supported the country’s demand for modern warehouses.
Mapletree Logistics Trust would have a total of four properties in Vietnam after completion of the sale, having one property in north and three in southern Vietnam, the sources mentioned. Initial net property yield of 8.3 percent is expected to be generated from the acquisition, while it is also anticipated to be accretive at the distribution level.
Projected to be closed by the fourth quarter of FY2018/19, the deal will be subject to fulfillment of precedent conditions, including a new land use right certificate to be issued to Mapletree First Warehouse (Vietnam). The trust has said that it would be funding the acquisition by debt.
After completion, the aggregate leverage ratio of Mapletree Logistics Trust will be around 38.9 percent, sources indicated. Overall, its total portfolio will grow to 140 properties having a book value of approx. S$7.7 billion (US$5.6 billion).